Rs 163 cr fake billing scam unearthed

In a major breakthrough, the GST Department unearthed a massive bogus billing scam in Ludhiana, involving transactions worth Rs 163 crore over the past two years.

Finance, Planning, Excise and Taxation Minister Advocate Harpal Singh Cheema said probe revealed that M/s Monga Brothers (Unit-II), Buddewal Road, Ludhiana, was operating a complex web of fictitious firms, creating fake input tax credit (ITC) and defrauding the state exchequer. He said the firm had made purchases from 60 bogus firms, which were either suspended or cancelled.

The total turnover of these 60 firms was nearly Rs 1,270 crore. He said the department conducted search and seizure under Section 67 of the Punjab GST Act, 2017.

“Based on investigation, the Taxation Commissioner, Punjab, ordered the arrest of the partners of M/s Monga Brothers (Unit-II) under Sections 69 and 132 of the Punjab GST Act, 2017,” said the minister.

Cheema warned tax evaders of strict action in accordance with the law.